There are always costs associated with shipping any products anywhere, but if you're shipping across an international border there are always some extra requirements, and often costs. It is worthwhile to spend some time thinking about the various costs that you can incur for international shipping so that you can make sure that your company is prepared for those costs before they crop up. The LTL carriers that you use to ship your products should be able to give you exact numbers as to the fees that you have to pay to ship to Toronto, but these are some general guidelines to let you know what different types of charges you will have to account for.
Taxes are going to be the first fee that comes up whenever you're shipping something up to Toronto. The different provinces in Canada have different laws as to what taxation is applied. Currently, the entire country of Canada has a general sales tax which would apply to everything that is shipped into the country. Some provinces, of which Ontario is one, also have an additional PST or provincial sales tax which would apply to goods being shipped into the province. A recently passed law however, has combined those two taxes into a 13% HST which is now what will have to be paid on goods being imported to Toronto.
There are other fees that apply besides these taxes. First of all, certain goods that are sent from one country to another fall under certain trade agreements. Sometimes this means that those are also going to be subject to other excess charges. Your shipping company should be able to advise you on that before you actually ship.
You will also have to pay a customs broker when you ship something from anywhere in the US to Canada. When shipping to Canada, it is likely that many, if not all, or your orders will be going to Toronto as it is by far the largest city in that country. This means that there is a way that you can help reduce the total amount that you're going to have to pay for shipping to Canada. The broker's fees are charged per shipment. That means that if you send a larger shipment all at once, instead of several smaller ones, you can save a considerable amount of money. Sometimes, even paying for storage in Toronto and sending larger orders will still yield a savings on cross border shipping.
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